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    Strategic Cost Management Activity 1

    Uploaded by

    Emerson Salanga
    The document discusses strategic cost management. It defines the two types of competitive strategy as cost leadership and product differentiation. It explains that identifying a sustainable competitive advantage involves finding the overlap between customer needs and a firm's strengths that competitors do not possess. Critical success factors are strategic financial and non-financial measures used to develop strategic information and support strategic goals and cost management. Managers implement strategy using information from management accountants about sources of competitive advantages like costs. Companies add value through their value chain by adding usefulness at each business function to increase the value of products and services for customers.

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    Strategic Cost Management Activity 1

    Uploaded by

    Emerson Salanga
    16 views2 pages
    The document discusses strategic cost management. It defines the two types of competitive strategy as cost leadership and product differentiation. It explains that identifying a sustainable competitive advantage involves finding the overlap between customer needs and a firm's strengths that competitors do not possess. Critical success factors are strategic financial and non-financial measures used to develop strategic information and support strategic goals and cost management. Managers implement strategy using information from management accountants about sources of competitive advantages like costs. Companies add value through their value chain by adding usefulness at each business function to increase the value of products and services for customers.

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    Strategic Cost Management activity 1

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    The document discusses strategic cost management. It defines the two types of competitive strategy as cost leadership and product differentiation. It explains that identifying a sustainable competitive advantage involves finding the overlap between customer needs and a firm's strengths that competitors do not possess. Critical success factors are strategic financial and non-financial measures used to develop strategic information and support strategic goals and cost management. Managers implement strategy using information from management accountants about sources of competitive advantages like costs. Companies add value through their value chain by adding usefulness at each business function to increase the value of products and services for customers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    16 views2 pages

    Strategic Cost Management Activity 1

    Uploaded by

    Emerson Salanga
    The document discusses strategic cost management. It defines the two types of competitive strategy as cost leadership and product differentiation. It explains that identifying a sustainable competitive advantage involves finding the overlap between customer needs and a firm's strengths that competitors do not possess. Critical success factors are strategic financial and non-financial measures used to develop strategic information and support strategic goals and cost management. Managers implement strategy using information from management accountants about sources of competitive advantages like costs. Companies add value through their value chain by adding usefulness at each business function to increase the value of products and services for customers.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Name: Princess Camille B.

    Corpuz Date: 12/06/22


    Subject: Strategic Cost Management Course & Year: BSA II

    1. Identify and explain the two types of competitive strategy.


    - The two types of competitive strategy are the cost leadership and
    product differentiation. The latter is a competitive strategy in which a
    firm succeeds in producing products or services at the lowest cost in
    the industry. While the former is a strategy that is implemented by
    creating a perception among consumers that the product or service is
    unique in some important way, usually by being of higher quality,
    features or innovation.

    2. Explain the process of identifying a sustainable competitive advantage for


    a firm.
    - From your customer research or customer analysis, identify your
    customer’s top wants and needs that you can solve. Find the overlap.
    From your list of customer strengths, find the overlap between
    strengths you possess that provide value or solve your customer
    needs. Axe the strengths your competitors also possess.

    3. What is a critical success factor, and what its role in strategic


    management and in cost management.
    - Firms use cost management to support their strategic goals. The
    strategic cost management system develops strategic information,
    including both financial and non financial information. Strategic
    financial and nonfinancial measures of success are also commonly
    called Critical Success Factors (CSF).

    4. How do managers implement strategy?


    - Management accountants work closely with managers in formulating
    strategy by providing information about the sources of competitive
    advantage – for example, the cost, productivity, or efficiency
    advantage of their company relative to competitors or the premium
    prices a company can charge relative to the cost of adding features
    that make its products or services distinctive.
    5. How do companies add value?
    - Companies uses value chain to add value. Value chain refers to the
    sequence of business functions in which usefulness is added to the
    products or services of a company. The term value refers to the
    increase in the usefulness of he product or service and a result its
    value to the customer.

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